If you don't know what quantitative easing is, in a nutshell when the banks lend money to the treasury to print more money instead of loaning it to you. The bank get's its money loaned to them from the Federal Reserve for almost no interest.I was just wondering if it is the reason the economies down.
Quantitative Easing is used by some central banks, by creating money to buy bonds or other financial assets, in order to stimulate the economy. It has risks, but one of them is not why the economy is down. It stimulates the economy in a way, because it is using the money to spend. However, it is possible to highly inflate the economy by creating the notes in excess amounts. Quantitative Easing can be useful in some ways. The money can be given to businesses so the requirements of the demands (aka what the business creates) are satisfied. In other words, it stimulates these businesses so they can further their goals.
If the quantitative easing is used properly, to help the businesses with their products (and to help production in general), the economy gets better and the value of the note gets higher.
Well, there are countermeasures to balance out the risks. It may jumble up the market when the value of the dollar goes down due to inflation, but all they have to do is ease up and continue to take measures (as said above) in order to bring the value up. It just needs to be used at the right moments. If it is used improperly and too excessively, it can screw things up.
Truth be told, I am VERY shaky on this subject. I had no clue about this word until when you just brought it up, but I've been reading around.
This may be completely off topic, but I really think we shouldn't have abandoned either the gold standard or the silver standard. We should have kept them both and called it the Golden Silver Standard. That may be old fashioned and silly of me though...
Yeah it is valkery. I kinda have to agree other than that the gold is slowly disappearing and silver is also losing the amount we have. Anyways I just thought that more people should know what is going on while they are well playing games talking etc.
